February 2015/4

Share price data on The Insurance Insider's universe of P&C (re)insurers

P&C (re)insurance stocks traded up again last week, with The Insider 30 rising by 0.75 percent.

The UK's Prudential Regulation Authority (PRA) has today (23 February) announced further details on how it plans to hold senior insurance executives accountable under a new, stricter regime.

Lobbying body Insurance Europe has called on the International Association of Insurance Supervisors (IAIS) to take more time over the development of the global insurance capital standard (ICS).

US thinktank the Tax Foundation has said that a provision in President Obama's proposed 2015 budget could reduce US GDP by $1.35bn and raise the cost of capital over the long term.

The claims teams at Ascot, Beazley and Argo Global are among the most improved in the London market, according to the latest research from consultants Gracechurch.

Short-tail specialists delivered mixed operating returns during the fourth quarter as their fortunes varied amid a more challenging environment.

Operating returns remained generally stable for Bermudian carriers in Q4 and full-year 2014 as the group benefited from another relatively benign year for cat losses and improved underlying performance.

The Insurance Insider's composite of short-tail carriers delivered top-line growth of 28 percent in the traditionally quiet fourth quarter last year.

Top-line expansion persisted for Bermudian carriers during the fourth quarter, as continued insurance growth helped to offset shrinking reinsurance books.

Chubb is seeking to broaden the coverage of its new East Lane Re cat bond and extend the length of the cover to five years, sister publication Trading Risk revealed last week.

Hannover Re has placed 25 percent more retro limit via its K quota share sidecar, sister publication Trading Risk reported earlier this month.

London-listed Lancashire is widely tipped as the most likely next seller in the Lloyd's market after a two-month period in which the boards of both Catlin and Brit recommended offers to shareholders.

Fairfax Financial agreed to acquire Brit Insurance for $1.88bn, with a commitment letter from Bank of Montreal for the full consideration.

When Brit was acquired by Apollo and CVC in 2011 for £888mn ($1.36bn) at a discount to book value it was a market laggard, held back by its sub-scale UK regional business.

Brit Insurance's sale to Fairfax is the dream outcome for the company's management team in that it offers them a big pay day, the chance to continue running the business and the advantages of being part of a bigger global group.

Fairfax Financial's decision to swoop for Brit Insurance seems to reflect something of a shift in strategy for the Toronto-headquartered business.

Tokio Marine Kiln's Syndicates 510, 557 and 308 have each closed the 2012 underwriting year of account at a profit, the firm announced last week (19 February).

Grahame "Chily" Chilton is set to take the helm at AJ Gallagher's UK-based international brokerage division at the same time as a number of key executives exit the business.

A number of Florida homeowners insurers are looking at the option of replacing sizeable chunks of cover currently bought from the state's cat fund with private reinsurance, creating a source of fresh demand ahead of the 1 June renewal, The Insurance Insider can reveal.

Lloyd's motor insurer ERS, previously Equity Red Star, has reported its first full-year profit in five years, achieving a total of £8.3mn for 2014.

Australian carrier IAG has confirmed that its losses from the 2010/2011 New Zealand earthquakes have deteriorated by NZ$950mn ($714mn).

Ross raids Towergate; Lloyd's goes Korean; Cyclone Marcia; Ironshore's Asia MD; Standard Club renewals; Darag goes Greek; Talanx exits Ukraine; Integro acquires; Elon-Felix losses; Brit on negative watch; IAG's NZ loss creep; Liberty Mutual gains Gaines; RSA sells Indian insurer; Eagle lands at GC; Zaffino joins Everest Re; Novae promotions

Fairfax Financial founder Prem Watsa prevented a potential bidding war for Brit Insurance by offering a $1.88bn binding all-cash offer just 10 days after entering into serious negotiations, and threatened to walk away if the proposal was not accepted in short order.